IT stocks led a dramatic charge on Monday, with the Nifty IT index surging by 1.65 per cent to reach 37,492.35 (as of November 24, 2025, 12:49 PM). This sudden, aggressive rally in the technology sector was driven almost entirely by mounting expectations that the U.S. Federal Reserve is poised to slash interest rates in the near term.
Indian IT companies generate over 60% of their revenue from the US market. A rate cut signals a recovery or stabilisation in the US economy, which directly affects the spending decisions of their biggest clients. (Source: Livemint)
Key market movers and numbers
The gains in the Indian market, which saw the NSE Nifty 50 and BSE Sensex trading marginally higher, were overwhelmingly concentrated in technology. Four of the Nifty’s top six gainers were IT stocks, underscoring the sector’s outperformance.
- Tech Mahindra was the leading gainer, soaring 3.10 percent to ₹1,506.
- Infosys followed closely, advancing 2.3 percent to ₹1,580.5.
- HCLTech climbed 1.83 percent to ₹1,637.5.
- TCS added 0.5 percent to ₹3,166.5.
Source: Screener.in, (as of November 24, 2025, 12:49 PM)
The US Fed catalyst: A 70% cut probability
The core reason for the optimism lies in a sharp shift in the US monetary policy outlook. The probability of the US Fed implementing a rate cut in December has climbed dramatically to 70 percent, up from just 44 percent one week earlier, according to CME’s FedWatch Tool. For Indian IT, which relies heavily on US client spending, this is a significant positive:
- Lower US rates are expected to support American economic activity and, critically, stimulate technology spending by key clients.
- The move also increases the relative appeal of emerging markets like India, attracting higher foreign inflows into the sector.
Financial snapshot: Nifty IT Index
The IT sector’s underlying long-term performance remains robust, as reflected in the Nifty IT index data:
- Current Price: ₹37,335 (as of November 24, 2025, 12:49 PM)
- Market Cap: ₹30,76,256 Crores
- 10-Year CAGR: 13.0 percent
- 1-Year CAGR: -13.8 percent (reflecting recent headwinds)
The dramatic shift in US rate expectations, coupled with the conviction that the AI services growth phase is imminent, has led to a powerful re-rating of IT Stocks, signalling a potential turnaround for the sector.
Sources: Business Standard, Screener, News 18
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation
Investors are requested to do their own due diligence before investing. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms .
